The Shariah-compliant value fund will take a medium to long-term perspective, investing in GCC-listed equities as well as fixed-income and money-market instruments. Where possible, the fund will seek to take an activist investment approach.

Dr Hussain Ali Al Abdulla, Chairman and Managing Director of Masraf Al Rayan, said: "The outlook for GCC economies and the development of the region's capital markets is very exciting. We look forward to rapid growth of the region fuelled by government-led investment and continued expansion of the private sector. We believe the time is ripe to launch a fund to tap into the region's enormous potential, especially as valuations remain very attractive. We expect the fund's activist investment philosophy will be well received by investors within the GCC and globally."

Adel Mustafawi, CEO of Masraf Al Rayan, said, "We are optimistic on the future of the GCC economies and have a clear strategy to invest in the region; we will therefore inject significant seed capital to the fund."

Abdulaziz Al Muftah, Director at Al Rayan Investment, said: "We continue to add to Al Rayan Investment's strengths and are steadily building one of the region's leading investment and financial advisory houses – we are grateful that our hard work and dedication is being increasingly recognized by our customers. Our commitment to clients remains unparalleled and we look forward to delivering the best for investors of the GCC Fund."

Keep up with the latest business news from the region with the Emirates Business 24|7 daily newsletter. To subscribe to the newsletter, please click here.